Oil drops below $88, hits 8 month low

On Sept. 22nd, oil prices jumped up more than 15 percent, the biggest one-day gain on record. Prices were up $16.37 to $120.92 per barrel. Well, we’ve got some good news for you today. Oil dropped more than 6 percent today to $87.81 a barrel after hitting an 8-month low of $87.56

The drop comes as global markets show concerns that fuel demand could slow further. Basically it’s a side effect of the crappy stock market and a global economic slowdown. Another reason is the No.2 consumer for gasoline, China, will not import oil for the second straight month. China will instead export its domestic stockpiles.

While this may all sound beautiful to us, OPEC is showing concern over the volatile oil prices. OPEC will meet in Dec to analyze the impact of the global economic crisis on oil demand and will set production levels accordingly.

Source: Reuters